Section 517.1204, Florida Statutes 2001
517.1204 Investment Fraud Restoration Financing Corporation.--
(1) The Investment Fraud Restoration Financing Corporation is hereby created as a nonprofit public benefit corporation for the purpose of financing the remedial measures instituted by the Legislature with respect to the victims of GIC Government Securities, Inc., and the payment of approved claims pursuant to s. 517.1203. The fulfillment of the purposes of the corporation promotes the health, safety, and general welfare of the people of the state and serves essential governmental functions and a paramount public purpose. The corporation shall terminate on July 1, 2021, or upon fulfillment of all of the purposes of this section, whichever occurs earlier.
(2) The corporation shall be governed by a board of directors consisting of the assistant comptroller, the Secretary of Elderly Affairs or the secretary's designee, and the executive director of the Department of Veterans' Affairs or the executive director's designee. The executive director of the State Board of Administration shall be the chief executive officer of the corporation and shall direct and supervise the administrative affairs of the corporation and shall control, direct, and supervise the operation of the corporation. The corporation shall also have such other officers as may be determined by the board of directors.
(3) The corporation shall have all the powers of a corporate body under the laws of this state to the extent not inconsistent with or restricted by the provisions of this section, including, but not limited to, the power to:
(a) Adopt, amend, and repeal bylaws not inconsistent with this section.
(b) Sue and be sued.
(c) Adopt and use a common seal.
(d) Acquire, purchase, hold, lease, and convey such real and personal property as may be proper or expedient to carry out the purposes of the corporation and this section, and to sell, lease, or otherwise dispose of such property.
(e) Elect or appoint and employ such officers, agents, and employees as the corporation deems advisable to operate and manage the affairs of the corporation, which officers, agents, and employees may be officers or employees of the department and the state agencies represented on the board of directors of the corporation.
(f) Borrow money and issue notes, bonds, certificates of indebtedness, or other obligations or evidences of indebtedness necessary to pay claims approved pursuant to s. 517.1203 payable from the Securities Guaranty Fund.
(g) Make and execute any and all contracts, trust agreements, and other instruments and agreements necessary or convenient to accomplish the purposes of the corporation and this section.
(h) Select, retain, and employ professionals, contractors, or agents, which may include the Division of Bond Finance of the State Board of Administration, as is necessary or convenient to enable or assist the corporation in carrying out the purposes of the corporation and this section.
(i) Do any act or thing necessary or convenient to carry out the purposes of the corporation and this section and the powers provided in this section.
(4) The corporation is authorized to enter into one or more service contracts with the department pursuant to which the corporation shall provide services to the department in connection with financing the functions and activities provided for in s. 517.1203. The department may enter into one or more such service contracts with the corporation and provide for payments under such contracts pursuant to s. 517.1203(2)(a), subject to annual appropriation by the Legislature. The proceeds from such service contracts may be used for the costs and expenses of administration of the corporation after payments as set forth in subsection (5). Each service contract shall have a term not to exceed 15 years and shall terminate no later than July 1, 2021. The aggregate amount payable from the Securities Guaranty Fund under all such service contracts shall not exceed the amount provided by s. 517.1203(1). In compliance with provisions of s. 287.0641 and other applicable provisions of law, the obligations of the department under such service contracts shall not constitute a general obligation of the state or a pledge of the faith and credit or taxing power of the state nor shall such obligations be construed in any manner as an obligation of the State Board of Administration or entities for which it invests funds, other than the department as provided in this section, but shall be payable solely from amounts available in the Securities Guaranty Fund, subject to annual appropriation. In compliance with this subsection and s. 287.0582, such service contracts shall expressly include the following statement: "The State of Florida's performance and obligation to pay under this contract is contingent upon an annual appropriation by the Legislature."
(5) The corporation may issue and incur notes, bonds, certificates of indebtedness, or other obligations or evidences of indebtedness payable from and secured by amounts payable to the corporation by the department under a service contract entered into pursuant to subsection (4) for the purpose of the simultaneous payment of all claims approved pursuant to s. 517.1203. The term of any such note, bond, certificate of indebtedness, or other obligation or evidence of indebtedness shall not exceed 15 years. The corporation may select a financing team and issue obligations through competitive bidding or negotiated contracts, whichever is most cost-effective. Any such indebtedness of the corporation shall not constitute a debt or obligation of the state or a pledge of the faith and credit or taxing power of the state, but shall be payable from and secured by payments made by the department under the service contract pursuant to subsection (4).
(6) The corporation shall pay all claims approved pursuant to s. 517.1203 as determined by and at the direction of the department.
(7) The corporation is exempt from taxation and assessments of any nature whatsoever upon its income and any property, assets, or revenues acquired, received, or used in the furtherance of the purposes provided in this chapter. The obligations of the corporation incurred pursuant to subsection (5) and the interest and income on such obligations and all security agreements, letters of credit, liquidity facilities, or other obligations or instruments arising out of, entered into in connection with, or given to secure payment of such obligations are exempt from all taxation, provided such exemption does not apply to any tax imposed by chapter 220 on the interest, income, or profits on debt obligations owned by corporations.
(8) The corporation may validate any bonds issued pursuant to this section, as provided in chapter 75. The validation complaint shall be filed only in the circuit court for Leon County. The notice required under s. 75.06 shall be published in Leon County, and the complaint and order of the circuit court shall be served only on the State Attorney for the Second Judicial Circuit. The provisions of ss. 75.04(2) and 75.06(2) shall not apply to a validation complaint filed as authorized in this subsection. The validation of the first bonds issued pursuant to this section may be appealed to the Supreme Court, and such appeal shall be handled on an expedited basis.
(9) The corporation shall not take any action which will materially and adversely affect the rights of holders of any obligations issued under this section as long as such obligations are outstanding.
(10) The corporation shall not be deemed to be a special district for purposes of chapter 189 or a unit of local government for purposes of part III of chapter 218. The provisions of chapters 120 and 215, except the limitation on interest rates provided by s. 215.84 which applies to obligations of the corporation issued pursuant to this section, and part I of chapter 287, except ss. 287.0582 and 287.0641, shall not apply to this section, the corporation created in this section, the service contracts entered into pursuant to this section, or debt obligations issued by the corporation as provided in this section.
(11) In no event shall any of the benefits or earnings of the corporation inure to the benefit of any private person, except those persons identified pursuant to s. 517.1203.
(12) Upon dissolution of the corporation, title to all property owned by the corporation shall revert to the Securities Guaranty Fund.
(13) The corporation may contract with the State Board of Administration to serve as trustee with respect to debt obligations issued by the corporation as provided by this section and to hold, administer, and invest proceeds of such debt obligations and other funds of the corporation and to perform other services required by the corporation. The State Board of Administration may perform such services and may contract with others to provide all or a part of such services and to recover the costs and expenses of providing such services.
History.--s. 3, ch. 98-82; s. 141, ch. 2001-266.